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Summary
In #3374 we pinned our Windows conda tests to setuptools<74.0.0 because of APPSI compilation issues. We tracked the issue to something weird going on with the combination of setuptools>=74.0.0, conda, Windows, and GitHub Actions and opened pypa/setuptools#4664 to ask for help from the setuptools devs.
@jsiirola and @mrmundt please add more details on what we've tried to fix this.